Asia Pacific hotel investment cools in the first half 2023

Asia Pacific hotel investment volumes declined by 51 percent year-over-year (y-o-y) in the first half of 2023 as macroeconomic challenges and the rising cost of debt influenced capital deployment. Coming off a high base in 2022 and despite supportive market fundamentals, hotel investments moderated to $3.13 billion in the first half versus $6.41 billion during the same period last year, according to JLL.

Activity during the first half was most robust in Japan ($1.54 billion) and Australia/New Zealand ($820 million), which grew by 56 percent and 189 percent y-o-y, respectively. Gateway markets such as Singapore ($30 million) dropped by 95 percent y-o-y as the number of transactions declined. With the recent sale of PARKROYAL on Kitchener Road for $388 million, however, the outlook for the second half of the year will be stronger. China ($300 million) also saw activity moderate by 76 percent y-o-y.

Despite strong performance metrics, activity in the resort sector was mut